History, 17.04.2020 21:18 avenhollander

Penni and Jessica each own clothing factories. Jessica's factory can produce 10 dresses an hour or 30 shirts an hour. Penni's factory, which has superior technology, can produce either 40 dresses an hour or 40 shirts an hour.

Which statement is true?
A. Penni has both an absolute advantage and a comparative advantage in producing both dresses and shirts.
B. Penni has an absolute advantage in both products, but Jessica has a comparative advantage in both products.
C. Penni has an absolute advantage in producing both dresses and shirts, but Jessica has a comparative advantage in producing shirts.
D. Penni has an absolute advantage in producing both dresses and shirts, but Jessica has a comparative advantage in producing dresses.

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